Robbins LLP: TransDigm Group, Inc. (TDG) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against TransDigm Group, Inc. (NYSE: TDG) in the U.S. District Court for the Northern District of Ohio, Eastern Division. The complaint is brought on behalf of all purchasers of TransDigm securities between May 10, 2016 and March 21, 2017, for alleged violations of the Securities Exchange Act of 1934 by TransDigm’s officers and directors. TransDigm designs, produces, and supplies aircraft components in the United States.
TransDigm Accused of Engaging in Illicit Business Practices
According to the complaint, in TransDigm’s public statements, the company reported solid financial results and emphasized that its ability to compete depended on its ability to provide competitive pricing. However, TransDigm allegedly hid from investors that the company used shell distributors to make noncompetitive government bids seem competitive and evaded government oversight of its cost structure. On January 20, 2017, Citron Research issued a report accusing TransDigm of price gouging the U.S. government through a fraudulent and illegal scheme. On this news, TransDigm’s stock fell $24.86 per share, or nearly 10%, to close at $226.90 per share on January 20, 2017. On March 21, 2017, the office of U.S. Congressman Ro Khanna issued a press release announcing that it had sent a letter to the Inspector General for the Department of Defense requesting that it investigate TransDigm’s business practices. On this news, TransDigm’s stock fell approximately 10% to close at $214.85 per share on March 22, 2017.
TransDigm Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003 or you can complete the form below and we will contact you directly.